r butts off and come back, i just, you know, want to make them proud. ♪♪ lemonis: so i'm here in draper, utah, right outside of salt lake city, and i'm meeting a business owner who has a leash business. let's take a look. -[ barking ] heather: this dog almost tore off his owner's arm, and so now she has a leash on, using pressure to help to calm her down. lemonis: that's crazy. a leash business in utah struggles to pull its business forward. cost to make it? heather: i wouldn't know what it costs. i've just never been involved in that side of it. lemonis: you guys knew i was coming, right? heather: yeah. lemonis: you got to know this. and an owner who doesn't know her numbers. i'm getting tired of you not knowing stuff. heather: yeah. yep, i agree 100%. lemonis: but do you agree, though? 'cause you agreed last time. heather: yes. yes. yeah. lemonis: and now we're standing here again today,

and you still don't have it. i'm marcus lemonis and i risk my own money to help businesses. i love investing in american businesses. woman: i just don't want anything to really change. lemonis: it's not always easy, but i do it to create jobs. i do it to make money. we have a deal? let's rock and roll. man: yeah! [ cheering and applause ] lemonis: this is "the profit." [ dogs barking ] heather: k9 lifeline is a boarding, daycare, and training facility. we are basically a mecca for difficult and reactive dogs. lemonis: a passion for helping difficult dogs and distressed owners has led to this business's popular products. heather: we have a leash that i designed, invented, patented, called the k9 lifeline transitional leash. most people will call it the magic leash. lemonis: currently sold locally and online, direct to consumer, demand is at an all-time high. heather: products that are out there aren't really what the dogs need. so that's where my creativity kind of steps in, and my experience steps in, as well.

the sales in the beginning were very slow, but once we kind of got a presence going, it just kind of blew up after that. when covid hit, we just completely blew up -- so many dogs at home. we started off doing about a hundred leashes a month, and now we're about up to about 1,200 a month. lemonis: heather, the owner, is having trouble coping. heather: i think, with somebody like marcus, i think we can really just -- just blow this up and take it to a whole 'nother level and help more dogs and -- and their humans. [ dogs barking ] i got you. you're okay. lemonis: it's her passion for the product that's standing in the way of its growth. i know she needs help, but will she be willing to listen to me to help this company and its brand get to where it belongs? heather: i would not give up control of my business. i mean, this is really something i've invested 25 years in. i'm a bit of a control freak, too. lemonis: hi, how are you? heather: it is such a pleasure to meet you. thank you so much for coming. lemonis: it's nice to meet you. heather: oh, my gosh, i'm just blown away, and i love that the first thing you get to see is all our amazing leashes.

basically, training, boarding and daycare is all here. lemonis: okay. heather: leashes used to be here, but we just recently in january moved out to another location. we just were growing too fast during covid. everyone was home with their dogs, and they all needed to know how to walk them. lemonis: so this is the business. -yeah. i mean, i designed it. i invented it. i have a patent on it. lemonis: so the leashes aren't here? heather: no. lemonis: and i know we're not gonna do much here, but can i see it? heather: come on down. i would love to. lemonis: so you have two buildings here. heather: yes. total acreage, maybe 1.4 acres. lemonis: okay, so you have a lot of money invested here. heather: yes, it's about $2.5 to $3 million. lemonis: wow. heather: we have about 35 staff members total. lemonis: wow. heather: these are all of our adult dogs. lemonis: oh, my gosh. unh-unh-unh. just ignore them, if i can ask you to say that. lemonis: you mean, don't engage with them? heather: don't say anything to them, yeah. so basically, our whole facility is training-based. so these guys, 80 to 90% of these guys came to us for human, dog aggression, or both. i have never, ever, ever turned a dog away for boarding, training, or daycare. lemonis: ever? heather: ever. lemonis: the team members

that work here -- do they all use your leash? heather: yes, yeah, and we use it as the slip lead, versus how we may use it as we're out on our training walk, where we would have it up as a head halter. lemonis: so it has that traditional leash functionality to it. heather: yep. lemonis: and it can convert into a training function. heather: yes. hence the name "transitional leash." lemonis: you know how hard it is to not engage with them? heather: i know. it's so hard, but look how good you're being. lemonis: i'm dying. one of the things that i love about going into heather's business is the organizational infrastructure that she's put in place. when these dogs come in, they're already slightly challenged, and for them to go in a really regimented environment is part of her success formula. i love your passion for the business. heather: thank you. lemonis: no, i really do. like you're really into it. heather: i am. i love it. i'm very lucky. lemonis: so can i meet you at the other spot? heather: of course you can, yep, and alex is there, so she'll be looking forward to it. lemonis: it's important to understand that she actually operates two distinct, separate businesses -- this boarding and training business, and then in a separate entity, her leash business,

which is the business that she's asked and applied for help with. hello. lisa: hey. gio: how are you, sir? lemonis: five years ago, i invested in a pet business called bentley's out of chicago, and now it's a much bigger national chain. one of the benefits of having gio and lisa, the owners of bentley's, involved is the true validation of the product itself. heather: hello. how are you? lemonis: surprise, surprise. heather: i'm freaking out right now. lisa: i'm lisa. nice to meet you. heather: i know who you are. gio: i'm gio. hi. so nice to meet you. heather: and this is alex, the leash lady. lemonis: okay, so you manage this part of the company? alex: yeah, the leashes. lemonis: so let me tell you why i brought them. heather: okay. lemonis: the two of them also started a pet distribution business. heather: oh, interesting. okay. lemonis: and so we're a team now, and ultimately we'll be making the decision together. heather: wow. all right. terrifying. great. gio: why terrifying? no! ♪♪ heather: this is the classic slip lead, okay? so with the transitional leash, you pull this out, and basically you end up with a head halter as well.

lemonis: so, if i loosen it, it would go around the neck. heather: it's a slip collar, yep. alex: and then it becomes like regular... lemonis: then you would just expose it a little bit more, and then comes up. alex: yeah. gio: so easy, even marcus can do it. heather: exactly. basically in developing this, it was very important to me that it was of a material that, you know, was soft for the dog, not just on the dog's face, but on the neck -- also for the handlers hands. lemonis: one of the questions that i had -- it's not meant to muzzle the dog. lisa: i was just gonna bring that up. heather: this is not just about training to teach them not to pull. this actually creates a very natural pressure point across the bridge of the nose that helps the dog to understand and learn how to kind of respect the relationship. lemonis: in a very simple form, the way this leash works is, it not only is made with great material so that it doesn't burn the hand of the owner or burn the nose of the dog, is that it uses pressure to get the dog to behave in a certain way. but when you pull the leash, it actually just creates a little bit of pressure so that the dog knows that what they're doing isn't acceptable. heather: so if you're looking at two separate products,

a leash and a head collar, you're looking at about $40. lisa: yeah, it's not cheap. heather: exactly. so this -- this is our retail. it's at $20. gio: how many can you make a day out of here? alex: i think about 120. gio: it's not a lot. heather: this is our problem. gio: the worst thing that can happen to you is, you get the big order. lemonis: it's going to happen. gio: that's why i'm saying. heather: we do. we get orders for 500 i mean, that's not uncommon. lemonis: no, i'm talking like 10,000. heather: that would be a problem. lemonis: when you look at the current facility where heather manufactures her leashes, she can only make about 120 a day. and so as supply and demand sort of become imbalanced, there's no way to actually increase supply. if i end up investing, i'm going to have to solve the volume manufacturing issue. i want you to take all the parts and pieces, and i just want to visually see how it's all made up. they're both six feet long. heather: mm-hmm. lemonis: there's two different thicknesses. heather: yes. heather: so this is 3/8, and then we also have a 1/4 for small dogs. lemonis: we're just gonna do the costing, okay? okay.

how many feet are on each roll? alex: 1,000 feet. lemonis: and how much is the cost of the spool? alex: $175. lemonis: okay. gio and lisa: 17.5 cents. lemonis: 17.5 cents per foot. and there are six feet that go into it. alex: it's $1.05. lemonis: so $1.05. is cost number one. that is just the rope. what is the cost... gio: for the smaller one? alex: that is $86. gio: oh, wow. so it's a lot cheaper. so it's 8.6 cents. alex: that is a different supplier than this one. lisa: a different supplier? alex: it's a different supplier. lemonis: and i can see it and feel it. gio: in the quality? alex: yeah, it's different. lemonis: what's gonna happen is, if i own a big dog and a small dog, i'm getting two different experiences. you can't have it be inconsistent. okay, and what do these cost? alex: 30 cents. lemonis: if i didn't let her answer, would you know? heather: probably not. lemonis: why? heather: because alex is in charge of this stuff. i've just never been involved in that side of it as far as knowing. i've asked alex to do it, and we have it all listed out. we know our margins. we know all that fun stuff. but no, i wouldn't know. i wouldn't know what it costs.

lemonis: you guys knew i was coming, right? heather: no, i have it in the computer. they're like literally right there. lemonis: go get the printout. gio: you're lucky. you're so lucky. you just made her day. lemonis: you'd be kind of screwed without her. heather: i know. i 100% agree. alex: okay, here's my evidence. lemonis: all right. so the rope is $1.05. long heat shrink? alex: 40 cents. lemonis: short heat shrink. alex: 32 cents. lemonis: o ring, four cents. logo, four cents. cord lock, seven cents. s-hook? alex: is 11 cents. lemonis: safety, $1.40. labor is $1.62. total cost is $5.05. and i'm gonna say it now so everybody can hear it. that thing has to get down to $4 without compromising anything. heather: okay. lemonis: at a minimum. you did great, by the way. heather: thanks, alex. you crushed it. alex: thanks. heather: you're amazing. lemonis: oh, my gosh. look! lisa: this is very cool.

lemonis: so this is a training facility, and you happen to live here? heather: kind of. yeah, i mean, this is more my hobby, but my really deep, intense hobby. -[ bellows ] lemonis: did you bring your financials? heather: um, yes. ♪♪ well, this is 2019 and 2020. so this is everything together. but the leashes are separated out. lemonis: leash sales in 2019 were $260,000. lisa: wow. heather: yeah. gio: holy cow. lisa: that's great. heather: wait till you hear this year. lemonis: 2020 is $414,000. gio: i am stunned. lemonis: cost of goods on the $414,000 -- $103,000. gio: okay. 70% margin. heather: it's about 75. lemonis: with a combination of wholesale and retail. it's had a proof of concept. you really can see the pathway to adding a zero to the number. for it to be $4.4 million doesn't seem like a huge leap because she's not penetrating the wholesale market, she's not in any big distributors heather: distribution is a bit of a struggle.

lemonis: have you put a value on the business in your own mind? i have an actual evaluation of the business. lemonis: what is it? heather: $1.2 million. lemonis: i agree with your $1.2 million valuation. that doesn't mean that that's the right value for us to invest in it. heather: right. lemonis: you're getting a value for your business of $1.2 million, but i need to get a value for what they're bringing to the table. so what i'd like to do is make an offer of $500,000 for 50% of the business. heather: yeah, i guess when it's split 50-50, who is the actual controlling partner at that point? lisa: it's gonna be us having conversations, them having input. giovanni's really good with numbers. heather: i would say my biggest fear would be just losing the controlling side of it. like, i mean, even 51-49 would be comfortable for me. lemonis: i don't have any interest in investing in it unless we would own half the business. i know that you want to have control, and i respect that.

i don't want to go on a roller coaster ride with somebody that is working on another business that i don't have an investment in. heather: yeah. lemonis: and so the fear for me is that you have full control of your business today and you're making good scratch on the leash business, but not a lot. the bulk of your earnings come from the training centers. and now i'm going to put a half a million dollars at risk into a business while you're managing some of that and a lot of that. heather: that's my biggest fear. i can't just -- i can't just -- i can't do that. lemonis: you don't want to lose control of your baby, and i don't want to lose control of my money. ♪♪ lisa: k9 lifeline -- to me, it sounds like a medical device. heather: i am not gonna give my tool some light, fluffy name. that's what i hate about the marketing for some of these tools. i hate the terms that are used. lisa: the goal is the same goal is yours. you can say that it's not. heather: i'm saying it's not.

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only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ lemonis: you don't want to lose control of your baby, and i don't want to lose control of my money. i'm trying to get heather to understand the value that both of us can bring to each other, and while she's focused on her other business, i want her to know that the three of us are gonna be right there with her and helping her grow her leash business. i just didn't think we'd be sitting here all night. it's a pretty simple business. $500,000 for 50% of the business. to me, i think, you know, half a million dollars going into a business that you own 50% of but we're bringing something, too. heather: absolutely. lemonis: is this something you think you'd like to move forward with? ♪♪ heather: i would like to move forward with this. i'm ready. gio: okay, lemonis: let's do it. heather: all right, let's do it. lemonis: let's hug it out. gio: oh, god. heather: oh, my god! all right, oh, my god. this is so exciting. let's do this. [ laughs ] ♪♪

lemonis: good morning! lisa: hey, guys. lemonis: now that we've made the deal, i want to really start to dig into the true validity of this product. now, we know it works, but i need to see it for my own eyes. i keep hearing about it being this magic transition leash? well, i want to see the magic. heather: just keep your distance a little bit. okay, good. and this dog came into us very, very reactive -- human, dog aggressive, so she almost tore off his owner's arm. lemonis: careful guys. heather: hey, alex. alex: yeah? heather: see if you can get somebody to bang on that door and then have them come in like an idiot. alex: okay. heather: thanks. lemonis: i'm gonna do that? heather: if you'd like to, yeah. lemonis: 'cause i'm good at the idiot. heather: what you can do -- stare right at her. lemonis: am i getting punked here? heather: no, you're not. you'll be fine. yeah. there you go. good. [ knocking on door ] lemonis: hey! -[ barking ] heather: there we go. there we are. -[ barking ] heather: and this is actually very toned down for her from when she came in.

okay, so, liz, let's let's go ahead and switch her. lemonis: let's switch her -- like i'll step out while you switch her. heather: yeah. [ knocking on door ] ♪♪ and so now she has a leash on, so what liz is doing is just using pressure to help to calm her down. lemonis: that's crazy. lisa: that quick. i mean, i understand she's done a couple days of training, but literally i would think that she'd still be somewhat reactive because, right, your pulse is going, the blood's flowing. heather: but even look at her whole body language, right? like her mouth is open. her eyes are soft. well, her ears are kind of silly anyway. but, i mean, this is -- lisa: she seems more relaxed, even visually, just... heather: yes. this just takes all of the pressure off of her to feel like she has to protect herself. lemonis: i'm kind of stunned. lisa: yeah, that was moments. this wasn't even like we said, "give her ten minutes. let her chill out." lemonis: it was 30 seconds. heather: and, lisa, do you notice we don't use food or treats or verbal? lisa: not even a verbal...

heather: everything was very calm, very quiet. lemonis: that is what you have to put in a bottle and figure out how to communicate to the masses, because i can experience it, and now i'm blown away. lisa: right. exactly. like that's quick. lemonis: yeah, i'm impressed with the leash because in one moment, where you put this contraption on and the pressure is applied across the top of the nose into the mouth, and it's just a slight pull -- it doesn't clamp the mouth shut. it allows the dog to understand that that's not okay. that's how this pressure tension works. now, the dog looks like it's chilling at the beach. how you guys doing? woman: good. lemonis: so this is lisa senafe. lisa: hello. lemonis: i invested in her business six years ago? lisa: six years in october. lemonis: lisa and i made a deal to invest a half a million dollars into the business. so one of the things that we're gonna want to do as a team is to develop the mission statement of the business and the ethos -- like why is it that we do what we do? alex: i want to see way more transitional leashes than harnesses or clip leashes. it's so much safer. her dog did training on the leash.

lemonis: did it make a difference? logan: yeah, i have a pretty aggressive dog, and we have never been able to take him outside into our front yard without him just going absolutely ballistic. and this was the first year that we've ever been able to have him in our front yard. lemonis: is that emotional for you? heather: yes. she not only works for us, but she sees the advantage of the product. look at her! logan: i love him to death. i'd never get rid of him, but it's really hard having an aggressive dog. lisa: but you're sticking with it. i mean, so many people probably would have given him back to the shelter. logan: oh, yeah. and that's part of the problem we're trying to solve is, how do we change people's minds and have them become more like you, where you're now hopeful and optimistic for this dog? lemonis: here's the other thing -- i'm worried about the name of the business of the leash. i don't know if it describes what it does. it's not a leash. it's a tool for me. alex: 100%. that's exactly right. lemonis: what's your biggest fear in this whole process? heather: i think -- i mean, partnering is scary for me because i've never -- i've never had a partner.

i've rarely had a boss. you know what i mean? lisa: i understand that. heather: right. [ both laugh ] he's gonna hate us. lemonis: okay, let's go to work. ♪♪ lisa: how are you? heather: good. welcome, welcome. lemonis: my goal behind this whole business is to really figure out how to get this product out to the masses. i want to understand what the product costs are, what the packaging could be, and how we're actually gonna manufacture them. she's the golden asset in this whole thing. and i want to make sure that we're tapping into those resources and talents she has and transfer them into a product that a consumer can buy. can you line up all the things you make? you said, "we make this. we make a clip leash. we make..." so this is...? heather: that's a six foot. lemonis: six foot what? heather: transitional leash. lemonis: you mean a transitional tool? heather: yes. transitional tool. lemonis: that's a leash. heather: yes. lemonis: this is a tool. heather: absolutely. lemonis: okay. next. alex: this is the little of that blue one. lemonis: okay, so this is all you make. heather: um... lemonis: who the hell are you?

like what is this? is it a leash business? is it a training tool business? is it all of the above? heather: this is what i want to sell. this is what we sell the most of, is our training tool. lemonis: what percentage of your revenue is this? heather: it's the highest percentage. alex: 90 plus. lemonis: okay. it's 90% of your revenue? cost to make it now? alex: $4.81. lemonis: how many colors does this come in? heather: that's an alex question. i don't -- i just don't know how many colors it comes in. lemonis: alex, how many colors does product a come in? alex: 17. there are two colors that don't sell hardly at all. and we have other options. lemonis: so 15 colors now? alex: 15 colors -- orchid and the green we're cutting out. lemonis: okay, and the top color is black? alex: black. lemonis: what's the next most popular color? alex: turquoise. lemonis: so these are the top two so far. what's number three? alex: purple. lemonis: what's number four? alex: navy, i think. lemonis: next? alex: burgundy. lemonis: and there's stats that support this? alex: i can get the stats. lemonis: it's available? alex: yes, it is available. heather: and what about

the pink-pink, alex? alex: pink-pink sells better than orchid, but the raspberry sells better than the two. lisa: wait, wait, what do you mean pink-pink? lemonis: what's it cost to make them? heather: that's a great question. i can tell you all the parts, how much they are. lemonis: over and over again, i continue to be impressed with heather's knowledge of the product, but i'm starting to get very concerned about her lack of knowledge of what the business instruments are that make up her business, like cost. it's good to see that she's surrounded herself with a good team, which makes her a good leader, and alex having all these answers. but i need heather to know these answers, too. can you go print out the truth? alex: yes. lemonis: so what do the stats tell us? alex: i'm about to get real embarrassed. black, turquoise, blue, orange, and then the regular green, which i did not think was selling that well. lisa: isn't that the one you cut? alex: yeah. lemonis: you got to learn this [bleep] heather: i know. lemonis: because you've got a half-a-million-dollar business here.

and i know how passionate you are about over there, but i'm starting to believe that you're distracted and not focusing on a business that can make you $10 million. heather: i 1,000% agree. lemonis: let's talk a little bit about the name. lisa: i know you love your name. here's my struggle with k9 lifeline. to me, it sounds like a medical device for a dog. heather: right. lisa: i don't make that immediate connection... heather: right. lisa: ...that it's going to help my dog in a way that i'm going to want to buy it and use it and love it. heather: i am not gonna give my tool some light, fluffy name to make it seem that it's not a training tool. lisa: but you have to also understand is, it gets them to open the doors. heather: that's what i hate about the marketing for some of these tools. i hate the terms that are used because it's not fair to the dog or the client, because there is training that has to happen. i'm concise in the fact that that is a life-saving tool. that is the one thing that they can bank on that will possibly keep their dog from going into the shelter.

lisa: you know that because you are so passionate about training and you know what these dogs have gone through. but the consumer -- the goal is the same goal is yours. you're ultimately trying to be the gentle leader of your dog. you can say that it's not. heather: i'm saying it's not. lemonis: we're here in vegas at the world's largest pet trade show. i have a lot of anxiety 'cause i haven't seen if she's even prepared for this. heather: okay. my head is just swimming. oh, god. lemonis: if you're looking to take your business to the next level, log on to... lisa: the goal is the same goal as yours. ♪ ♪ ♪ hey google. ♪ ♪ ♪

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you're ultimately trying to be the gentle leader of your dog. you can say that it's not. heather: i'm saying it's not. lemonis: i think most business owners are reluctant to look at the modification of their name because they built it and they have a pride of ownership. i don't fault them for that. what i want heather to understand is how much wider the market can get and how much more successful the product can be if she actually gets behind it with a story and a name that makes sense to people. she's the one that has dedicated her life and passion to saving animals, and the brand, in my opinion, has to take on that persona and not just feel like some cold technical product. i needed to really represent who she is, and that's gonna be my biggest challenge. i think what lisa is suggesting is that it should be more descriptive. heather: right. lemonis: do you believe that it's best for a product to be descriptive in its name? heather: yes. lemonis: okay. heather: ooh. lemonis: no. there's no "ooh." it's no gotcha.

the descriptive nature of it helps an average person who doesn't get an opportunity to meet with either of you 3, because if somebody met with the three of you, you could call it "who gives a [bleep]" and sell it. heather: totally. lemonis: okay? the problem is, is that you don't get that chance. k9 lifeline is the service and the school and the training and the process you're putting them through at the other location. this is an extension of that. heather: right. okay. lemonis: it isn't that. heather: i'm softening up. lemonis: so when you call your entire facility the same name as you're calling a piece of rope. i don't know how to delineate from them. heather: i get it. i totally get what you're saying. and i can see the like needing a differentiation. i'm my own bottleneck. i can be my own worst enemy. so i definitely get it. lemonis: we have to retrain the way she thinks about her business, herself, her approach to things. and it's a little ironic that we're trying to retrain one of the greatest trainers out there.

i think you and i need to go to l.a. we need to go see art, which is a relationship that lisa has that does a lot of private label. we need to find out what he can cost these for. and we're also gonna continue to talk about the name. heather: okay, i'm open for that conversation. ♪♪ lemonis: how you doing, my man? art: how are you? good to see you. hey, lis. how are you? lisa: good to see you. lemonis: this is our partner, heather. heather: nice to meet you here. great place you have here. lemonis: so i wanted to bring lisa and heather to los angeles with a current provider that lisa and i use in her business, and that's artvark, and he essentially specializes in developing and distributing products to the entire pet industry. heather: thank you. oh, wow. okay. [ laughs ] art: so we've got 52,000 square feet. heather: wow. i'm just blown away. like i can't even like -- i'm just like all smiles, like this is insane. lemonis: what we want art to do is to drive down our manufacturing costs,

be our distribution partner, weigh in on other products. art: so you're currently manufacturing this yourself? heather: yes. lemonis: she did about a half a million dollars in sales last year. art: i'm amazed. lemonis: what i'd like to do is really have art understand what your costs are. heather: all put together, our cost for this one was $4.81. art: okay. okay, so this is $1.10. this is four cents. lemonis: i don't know what this is. heather: the s-hook. lisa: this? heather: no, this one is 11 cents. so this would be -- i think this is 88 cents. lemonis: you think? it has to be exact. heather: no, i know it. i know it. thank you. okay, so...this one... um, just -- if i can just look at them just a little closer. yeah, rope, $1.29. there you go. lemonis: heather, i'm gonna call you out right now. heather: yeah. lemonis: when you put the transitional tool on an animal, you are able to get them to do certain things by doing what?

heather: like pressure? lemonis: yeah. heather: yeah. lemonis: what's the equivalent that i could use to get you to focus on numbers? 'cause i want to train you to be the best numbers person out there. you can't be an owner of a business and not know your numbers. heather: i mean, this is a lot. it's -- it's overwhelming. i know. i'm learning. lemonis: if we make this with you as our production partner, what do you think this number will look like -- 10% less? art: uh, probably more towards 30, 40? heather: wow. lemonis: you see the importance of knowing that number? heather: i do. i see it. i'm learning. lisa: what do you think of the name? what was your first impression? you can be honest. art: k9 lifeline? lisa: yeah. what did you think it was? art: actually, i thought they were like doggie heart attack paddles, like a defibrillator. heather: that's fair enough, yeah, 'cause that is a confusion that happens a lot. lisa: that's not the name. heather: no. well, the full name is k9 lifeline transitional leash. art: well, that's a mouthful. lisa: that's a mouthful. heather: i know. i agree. i agree. that's why i'm here. lemonis: you're responsible... heather: yeah.

lemonis: ...by yourself... heather: yeah. lemonis: ...to come up with the name. lemonis: we're gonna have to develop a website. we're gonna have to develop the packaging. this is the pressure part. i'm gonna give you a certain amount of time to come up with it, and if you don't, i'm gonna take it away and do it for you. heather: okay. lemonis: so if you want to keep your fingerprints on it, you got to come up with it. heather: okay. ♪♪ lemonis: i keep bumping in with you. like, i'm getting tired of you not knowing stuff. heather: yeah. yep, i agree 100%. lemonis: but do you agree, though? 'cause you agreed last time. heather: yes. yes. yeah. lemonis: and now we're standing here again today, and you still don't have it. (vo) at t-mobile for business, unconventional thinking ♪♪ means we see things differently, so you can focus on what matters most. whether it's ensuring food arrives as fresh as when it departs. being first on the scene, when every second counts. or teaching biology without a lab. we are the leader in 5g. #1 in customer satisfaction. and a partner who includes 5g in every plan,

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if you can't afford your medicine, lisa: we carry the freedom no pull. heather: okay. lisa: and then, as you can see, these are art's leashes and collars. lemonis: after going to see art, i wanted to take heather to one of lisa's locations in los angeles, and i wanted her to see how her product would live inside of all the other leashes, and i also want her to understand what competition she's up against. lisa: hey, marcus. lemonis: hi. i just wanted you guys to really understand what you're dealing with in terms of the competition -- price, packaging, messaging. heather: right. okay. lemonis: do you like the fact that it's in a box like this or no? heather: i don't see why not, because you can actually see what it is. freedom no pull harness -- it says exactly what it does. for this product, it's perfect. it's not perfect for my product. lemonis: so what is the right thing for your product? heather: that's a -- that's a good question.

i mean, still thinking about what would -- what would be a good fit, 'cause it requires more than just throwing it on the dog. with ours, it just requires a little bit more patience and training. lemonis: really? lisa: this requires some training and thought and patience with it, too. it's still a training tool. heather: in my expertise, i would tell you, it's a lot easier to put a harness onto a dog than it would be to put a head collar onto a dog. lemonis: are you saying that we, as pet owners, are going to be turned off? heather: potentially, by the concept of training based. lisa: but they're looking for something. heather: they want help. so if it's if it literally says "training based" on it, they're like, "oh, this is for training." like that's what they would be reaching for. lemonis: so what are three words that you would use to describe your tool? it's always good to put that -- the characteristics of the business. and so i like to create visuals. okay, in the middle of this triangle is the product. heather: right. lemonis: okay. there's you, the expert, the leader of the pack. you invented the product. you're setting the tone.

here's the dog owner. heather: okay. lemonis: the one that we want to feel has a great experience. heather: definitely. lemonis: and then for the pet themselves, what's the feeling they want to have? it's like the magic triangle. the importance of creating illustrations for heather is that i think it will help her understand the power of what she's created. the triangle essentially creates the ability to connect people -- her as the leader and the trainer and the dog owner who needs the help. and at the center of it all is this magic leash. there is an interdependence between the three parties, and at the center of it is the solution. make sense? heather: it's getting clearer, and i'm starting to see it, but i have to hear it from other people, and i have to be open-minded enough to hear it from other people and not get defensive and not get, you know, upset 'cause it's hard not to. lisa: keep it simple. lemonis: see ya. okay, guys. heather: thank you, marcus. lemonis: take care. bye. ♪♪

heather: we're here! lemonis: so heather asked me to come down to laguna beach, where her agency that she's been working with for about four months is trying to move her business forward with a new website and a new look. heather: hey! lemonis: more importantly, heather's gonna share ideas of names that i've tasked her to come up with and we'll see if she's actually solved the problem. all right, my biggest challenge is i don't understand the name, i don't understand how it separates from the business, and i don't understand how you develop other ancillary products that are mates to that under the current structure. heather: i would like to present to you what we've been working on. so we wanted this to be the first choice for pros, for owners, and for dogs. so the name that we came up with is trifecta dog products. lemonis: i think of horse racing. it's a gambling term for horse racing. jeremy: that's exactly what i thought of, too. lemonis: right now, i feel like you're being clinical with me. heather: yeah. jeremy: keep it simple. like i would say that "trifecta" is sterile and corporatey. heather: from what i gathered,

this is what i came up with and something that i liked. lemonis: as we move forward, though, it's still unclear to me -- does heather want to own a line of products that are specifically meant to address the reasons she's in the business, which are... lemonis: keeping dogs from dying. lemonis: people need to understand the emotion that you have for these animals. heather: well, 'cause it's everything we do. i mean, most of these dogs, it is life or death, 'cause if they end up in the shelter, that's it. i thought we were doing good. lemonis: right, but you brought one option. i got to get her just to put the name on it. the website's waiting. we're waiting on signage. we're waiting on too many things. she needs to make a decision and move forward. ♪♪ hey, guys. heather: hey, marcus. lemonis: after giving heather several weeks to come up with her own name, i want to remind everybody that i told her

that if she didn't come up with it, i would pick it for her. so i've brought her to chicago to show her some ideas for names that i think actually accomplish what all of us want. i've been vehemently opposed to having the product be called k9 lifeline. the agency -- they had given us some logo ideas, and the logo ideas i loved. are you ready to see it? heather: i think so. lemonis: are you sure? heather: i don't know. yes. oh, wow. that's -- what? that's so -- that's crazy. gio: that's good. heather: that's a lie! it looks beautiful! oh, i love it. lemonis: lisa made this excellent point, is that you're the reason that it's valid. you're the authentication of the product. heather: whoo! no pressure. [ laughs ] lemonis: and so the first thing somebody's gonna say is, "who's heather?" gio: correct. lemonis: heather's our world-renowned trainer. this is what she's known for. heather: oh, man! oh, yes! gio: yeah, i like that. heather: oh, yeah. lemonis: i'd rather see something like a self shipper --

a corrugated box that you can tear open, that can ship easily, that you open it up and it gives you the display space, and it becomes your silent salesperson. lisa: yes. lemonis: a self shipper is a freestanding piece of cardboard that you see in a grocery store or at a convenience store that actually encompasses the product inside of it. and when it arrives from the manufacturer, it comes like a box. a self shipper allows the retailer to say yes today, to actually get the product, and put it right on their floor and start selling. the three of us lined up the trade show superzoo. heather: [ chuckles ] gio: no big deal. less than two weeks, though. so you got plenty of time. lisa: no pressure. heather: whoa, oh, whoa. lemonis: so the brand needs to be right, and the product assortment needs to be right. heather: superzoo is a huge convention. there's pet retailers there, there's new products -- everything that you can even imagine. i've been on the buying side of it at superzoo, but i've never been on the selling side of it. so i'm excited. lemonis: let me see the new ideas. heather: these are the new clips.

lemonis: this is a new product, and it'll be sku 1. heather: yes. i didn't finish. lemonis: what will it cost to make that? heather: um, that is a great question. lemonis: how much does it cost to make? heather: i didn't add that out. lemonis: why not? heather: 'cause i didn't know if you guys would like it or not. lemonis: this is a beef that i have with you. you got to know this [bleep] heather: yeah. i keep bumping in with you. like, i'm getting tired of you not knowing stuff. heather: yeah. yep, i agree 100%. lemonis: but do you agree, though? 'cause you agreed last time. heather: yes. yes. yeah. lemonis: and now we're standing here again today, and you still don't have it. ♪♪ heather: okay. i haven't slept in two weeks. it literally has been just go, go, go. and i have to know all of my numbers. oh, god. my head is just swimming. ♪♪

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lemonis: i keep bumping in with you. like, i'm getting tired of you not knowing stuff. heather: yeah. yep, i agree 100%. lemonis: but do you agree, though? look, i love everything about heather, but i am at my wits end about her not knowing her numbers. and it's not like i'm asking her to build a calculus model. i'm asking her to bring me a product and tell me what the cost is, tell me what we're gonna wholesale it for, and tell me what it's gonna retail for, and tell me what the margins are that go along with it all. and if i see her the next time and this doesn't happen, i'm gonna lose more confidence, and maybe this isn't the right investment for me. where's the other products?

heather: so i've been working on this harness that creates the same concept as the transitional on the head. any dogs in the building? cooper! gio: oh, look at this, bud. you're a star. huh? do you want to be a test subject? okay, what we're gonna do -- see that little s-hook there? that's gonna come up between his legs, and it's gonna come back and up over his neck. lisa: good job, cooper! heather: there you go. perfect. good job. that's working how i thought it would. lemonis: one of the things that i love that heather did is she took her existing raw materials and figured out how to make alternative products that can be sold as an add on to the transitional leash. i'd say home run. lemonis: yay. lemonis: except for the fact that you struck out in not knowing the numbers. heather: true. lemonis: so this is the last time that's gonna happen. we'll see you in las vegas. heather: okay. gio: yeah. heather: yeah. ♪♪ okay, it's easier to fold up then. man: yeah. heather: okay. we have a huge event coming up, superzoo. there's a lot going on.

getting all the signage, all the packaging. with the color, it just looks kind of dull. i want it to jump off. man: we'll work with your graphics -- will pop. heather: we have to make all of the tools. we have to make sure that the tools that we make are functional -- just putting them on dogs, making sure that they work the way that they're meant to work. what i found with this is it gets way too tight on their neck. yeah, i just don't think this problem is gonna be solved before superzoo. i'm also kind of excited about the new name, heather's heroes, that i get an opportunity to share my experiences with people that are there, and they get a chance to get to know me and why i do what i do. [ laughs ] oh, yeah. these dogs are totally going to vegas. they want to party. i'm not sure about this guy yet, though. he's a little freaky. there's a huge amount of pressure on me. if i was just going without lisa and marcus, it would be very different. i don't want to disappoint them. i want to make sure that i bring the best that we can to superzoo,

and i really want to represent them as much as i want to represent myself. let's go! come on, guys! let's go! come on, come on, come on! ♪♪ lemonis: so it's a pretty exciting day. we're here in vegas at the world's largest pet trade show, and this is the first time that heather has actually taken her product out from the small little town that she's in, and she's bringing it on the grander stage where thousands and thousands of buyers and distributors are here. i have a lot of anxiety 'cause i haven't seen the final packaging and her final booth and if she's even prepared for this. heather: okay. these tables drive me a little crazy. i've never been to anything this big. people that come to shows like this are planning for about a year. we had two weeks, and we didn't know our logo and our concept and our name until two weeks ago. problem is, i don't know what we're gonna do with this,

so it's kind of a whole different situation. i haven't slept in two weeks. it literally has been just go, go, go. and i have to know all of my numbers, which i've been trying to memorize this whole time. oh, god, i hope i can use my cheat sheets 'cause there's no way i can memorize all of this. ♪♪ but my head is just swimming. lemonis: all right, let's sell something. so gio brought a little surprise for you. heather: oh, what?

at usaa, we've been called too exclusive. because we were created for officers. but as we've evolved with the military, we've grown to serve all who've honorably served. no matter their rank, or when they were in. a marine just out of basic, or a petty officer from '73. and even his kids. and their kids. usaa is made for all who've honorably served and their families. are we still exclusive? absolutely. and that's exactly why you should join.

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lemonis: look at this! you're legit! look how legit you look. heather: hi! ♪♪ it's really taken a village, but it really turned out amazing. lemonis: i didn't think it was gonna look this good. heather: [ laughs ] lemonis: i really didn't. heather: yay! we brought all our new packaging. i was able to get a lot of feedback from people on some of the new product. we brought a bunch of new stuffed dogs, because we just wanted to show people how our products work and look. and actually that has drawn a lot of people to our booth. we've taught a lot of people how to really handle difficult and aggressive dogs, which is what we do and what this tool creates. i think our branding and our packaging

and even the story that goes along with, "who's heather? who are the heroes?" i can see now that, when people see this picture, they feel something. for the show discount, if we get your information today it's $736.72. lemonis: after spending time with her in the booth and watching her talk to different people, she's a totally different person when it comes to understanding that the numbers drive her business. so this is what you're showing people as the shipper that you and lisa talked about. heather: yes. yes. yeah. lemonis: how do you feel about it, art? art: i love it. put it right up in the store -- boom. lemonis: look how cool this is. heather: i know. do you love it? lemonis: really important to me when i looked at heather's products that she was able to deliver to a retailer in a way that would make it simple and easy. did you write any orders here? heather: we have a whole pile interested in the product and interested in this, but i just really wasn't able to just say, "hey, we have this, and we can ship it out to you." lemonis: so these are all interested people in the product. heather: yes. lemonis: this self shipper -- she knocked the cover off the ball.

and so when you see that stack of orders, a lot of it is driven by the fact that people know that it's simple and easy and profitable to add heather's heroes to their store. okay, so here's where the fun starts. heather: oh, great. lemonis: not for you. heather: okay. lemonis: what's this cost? heather: the cost for us -- that's the four foot is $3.84. for retail cost would be $11.49, and then on the shelf would be $22.99. lemonis: what i love about what heather's doing is she's relying on a piece of paper with all the information on there. it's not a cheat sheet. it's a guide. and you don't have to know them all in your head. and if numbers aren't your thing, rather than you saying to me, "that's not my thing," she's at least saying "it's not my thing, but i'm going to solve it." how about this one? heather: the power trio, the 28-inch is $3.55, is what that costs. i am gonna carry that cheat sheet everywhere with me. so do i know my numbers? yes, i do. lemonis: this feels great. heather: okay. it looks good on you. lemonis: all right, let's sell something. gio brought a little surprise for you. gio: my man.

lemonis: what's the good word? good to see you. michael: good to see you, too. heather: hi. nice to meet you. michael: i'm the ceo of earthwise pet. heather: excellent, yeah. michael: we have 70 locations across the country currently. i love the name heather's heroes. we might be able to put throughout our system. lemonis: would you love to see your concept across the country? heather: absolutely. lemonis: that's the guy. heather: i would love it. looking to the future, i've been given this amazing platform. i can only imagine how many more dogs we can save, how many more people we can help. i'm looking forward to it. thank you, marcus. lemonis: okay. high fives for everybody. heather: thank you. lemonis: okay, guys. good luck. don't come home without orders. heather: i'm right there. i got it. i'm proud of myself. sometimes it's hard to give yourself a pat on the back, but when you have such an amazing group of people telling you you're doing something right, you can make that a little bit easier to tell yourself you're doing okay, too. lemonis: the business is totally transformed, with a new name, new packaging, new products, a new website.

and now with her new relationship with art, the distributor, her relationship with lisa and gio, and her new relationship with earthwise, this company not only has wholesale distribution, it has national distribution. ♪♪ lemonis: when's the last time you rode the fun slide? jerry: about a week. lemonis: let's go! tonight on "the profit"... my god, i'm already dizzy. ...a family fun center located on 7 acres in las vegas has become one of the city's most popular destinations. taylor: whoo! we're the birthday party capital of the world. lemonis: this feels like it. after nearly 27 years in this industry, owners jerry and matisun barton are ready to hand over the keys to their son, taylor. jerry: you're doing good, buddy. lemonis: but taylor struggles to fit in, sometimes appearing totally out of control. taylor: we sell fun here, so if you're not smiling, i'm gonna send you home. lemonis: your attitude, i want to throw it in the trash. previously, taylor was a nascar driver,